The Zebra Releases the State of Auto Insurance Pricing Report

In August, insurance comparison marketplace, The Zebra, released its report titled “The State of Auto Insurance Pricing,” which compares quotes based on location, various personal attributes, vehicle type and driving behaviors. The report factored in quotes from several larger insurance carriers, including State Farm, Allstate, GEICO, Progressive, Nationwide, Farmers and Liberty Mutual.
On average, the typical driver pays $1,323 annually in premiums and sees an 11-percent increase over a five-year period. Beyond this figure, how does insurance change and where does Connecticut fit in?

• Average Premiums: Connecticut’s annual auto insurance premiums fall within the nation’s 10 most expensive, with a typical driver paying $1,625 per year.
• Rates: Premiums rose 10.8 percent on average from 2011 to 2016, but rates didn’t steadily increase. Rather, that five-year period saw several ups and downs. While Connecticut’s fluctuations were average, drivers in Iowa, Massachusetts and Mississippi saw the greatest changes.
• Who Pays More?: In 32 states, men pay greater premiums and in 12 states, women pay more. Five states don’t factor gender into rates at all. In Connecticut, men typically pay $8 more per year than women.
• Teen Drivers: Teens pay nearly $4,600 more per year on average compared to other age groups. However, premiums decrease steadily from the time a driver is 16 until he or she is 21. Rhode Island has the greatest difference between adult and teen drivers, with premiums 450-percent greater for teens.
• Marital Status: Data further shows that married couples pay less than single, divorced and widowed individuals. In Connecticut, this amounts to $100 on average annually.
• Renting vs. Owning: Similarly, renters pay more than all types of homeowners. In Connecticut, the difference comes out to $160 per year.
• Education: Between individuals with a Ph.D. and a high school diploma, premiums increase. In Connecticut, that difference is about $70 per year.
• Credit: Your credit score and history directly impact how much you’ll pay per month. Specifically, those with poor credit pay more than double someone with an excellent score. In Connecticut, premiums drop from about $2,770 to $1,330 over this range.
• Savings: What’s the easiest way to save? The report found that those with a longer driving history, no gaps in coverage and higher liability tend to save more.
• Usage: In terms of how you use a vehicle, those on a farm usually pay the lowest premiums. However, cars used for business have the highest rates. In Connecticut, the difference is nearly $100.
• Driving Violations: Certain ticketed violations push your rates up more than others. Cell phone usage has the least level of impact, but DUIs can double your rates. In Connecticut, a cell phone offense may push your premiums up to $1,625 per year, but a DUI will increase it to $3,293.
• Type of Car: Generally, luxury vehicles are the most expensive to insure, followed by eco-friendly vehicles, trucks, sedans, SUVs and vans.
• Age: Over a five-year period, your premiums may increase as much as 15 percent

Do you have questions about your current auto insurance coverage? Give us a call at 203.439.2815.